MP Materials Corp. began construction of its first rare-earth metal, alloy and magnet manufacturing facility in Fort Worth, Texas. The factory is a substantial component of a $700 million investment the company will make over the next two years to restore the U.S. rare-earth magnetics supply chain. The project will create around 150 high-skill jobs and 1,300 indirect jobs. MP Materials’ Fort Worth facility will have the capacity to produce approximately 1,000 metric tons of neodymium-iron-boron (NdFeB) magnets per year, supporting the production of approximately 500,000 EV traction motors. In addition to EVs, NdFeB magnets are critical inputs to robots, wind turbines, drones, defense systems and many other high-growth technologies.

In parallel, MP Materials and General Motors are co-announcing a definitive supply agreement to produce alloy and magnets for GM’s EV programs. Under the long-term agreement, MP Materials will supply U.S.-sourced and manufactured rare-earth materials, alloy and finished magnets for the electric motors in more than a dozen models using GM’s Ultium Platform.

In February, the Department of Defense awarded MP Materials $35 million to refine and separate heavy rare-earth elements at the company’s rare-earth materials production facility in Mountain Pass, Calif. MP’s Texas magnetics factory will source refined feedstock from Mountain Pass and transform it into finished products.